FREQUENTLY ASKED QUESTIONS

Let us answer some of your most immediate questions

Yes we do and 100% of our buyers use their services for extra security. Buying in Spain is fairly straight forward; however you will need someone to assist you with the legal processes, due diligence, draft contracts, language and the legendary Spanish bureaucracy. Especially purchases of property in frontline locations or on “rustic” land can be very tricky at times.

Yes, of course you can. Mortgages are very trendy at the moment. You can take advantage of record low interest rates and you can also use a mortgage to safe property taxes. Since the credit crunch, Spanish banks have reduced their mortgage business. However, some banks will offer up to 70% for non residents.

The Plusvalia Tax is set by the local authorities of each municipality and it is based on the increase of the value of the land from the date the owner acquired the land to the time of the present sale.

The local authorities determine the amount of Plusvalía to be paid for each purchase in Spain, depending on the area where the property is located. The tax is calculated according to the cataster value of the property and the number of years it has been in the ownership of the vendor. The market value or sales price of the property does not have an effect on the Plusvalía tax.

In Spain “Escritura” or “Escritura Pública” means Deed or legal written document signed, sealed, witnessed and recorded by a notary public in Spain. A Deed related to any form of real estate transaction is normally submitted to the Land Registry for its registration and inscription. When you set up a mortgage, a separate deed is being drafted and inscribed into the land registry. Any deed is a physical document you should usually keep in a safe pace.

N.I.E. is an abbreviation for Número de Identidad de Extranjero, which translates as Identification Number for Foreigners, or Foreigners’ Identification Number if you prefer.

The NIE is your all-purpose identification and tax number in Spain. You need it for everything that involves a tramite or official process in Spain. For example, you will need an NIE number to buy a property, buy a car, get connected to the utilities and, most importantly as far as the Spanish state is concerned, pay your taxes. Without an NIE number, the Spanish tax authorities are unable to assess or process annual tax payments such as income tax (IRPF), and the annual wealth tax (Patrimonio), both of which are declared by resident and non-resident property owners.

Listen to your real estate agent’s advice, but also follow your own instincts on deciding a fair price. Calculating your offer should involve several factors: what homes sell for in the area, the home’s condition, how long it’s been on the market, financing terms, and the seller’s situation. By the time you’re ready to make an offer, you should have a good idea of what the home is worth and what you can afford. As a rule in Spain, you can try to make an offer of approx. 10% below asking price without necessarily offending the owner, but it really depend on the individual situation of each seller. In 2016 the average negotiation margin was close to an 8%. The real estate market, especially in Puerto Andratx, Bendinat, Costa d’en Blanes, Santa Ponsa and Portals Nous is strong, so be prepared for give-and-take negotiation, which is very common when buying a home. The buyer and seller may often go back and forth until they can finally agree on a price.